System and method for capture, storage and processing of receipts and related data

ABSTRACT

The present invention is a system comprising image capture device, such as a scanner or digital camera connected to a computer processor that is able to capture and store images, and method of using the same for storing and processing expense receipts. The computer processor analyzes the images of the receipts, converts the images to text, analyzes the data, extracts expense data, and puts the data into an expense report. The end user can review the captured expense data, correct it or add to it. Preferably, the system displays the image of the receipt side-by-side with the captured expense data to make review and editing easier. In a preferred embodiment the image capture device is portable, such as a handheld scanner or digital camera, so that a user can scan receipts while traveling and discard the receipt. Also, in a preferred embodiment, the images are encrypted to prevent tampering by the user or a third party, and thereby preserve the integrity of the receipt image. In one preferred embodiment, receipt images or uploaded via the Internet an intranet, or other network to a remote data storage facility to further protect the images, both from tampering and from loss.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application claims the benefit of U.S. ProvisionalApplication No. 60/420,471 filed on Oct. 21, 2002 and U.S. ProvisionalApplication No. 60/459,810 filed on Apr. 2, 2003, which are incorporatedherein in their entirety.

BACKGROUND OF THE INVENTION

Most commerce transactions entail a vendor creating a receipt for apurchaser. Many times these receipts are lost, torn, or faded from toomuch exposure, or are discarded. These receipts are often required ordesired to be kept in acceptable condition for a variety of business andpersonal reasons.

Providers of receipts have attempted to address some of the problemspresented by paper receipts. The use of computing technology speeds thepreparation and payment of the bill, at which time a receipt can bequickly printed. It is also possible to have receipts mailed to anaddress specified by the traveler, obviating the need for the travelerto carry the receipt. These methods, however, are merely attempts to geta paper receipt to the traveler more quickly or conveniently and do notaddress the problems inherent in paper receipts.

Business professionals or corporations require receipts for the purposeof reimbursement from their own company or another company (client) thatis paying for their services and expenses. Small business owners requirereceipts as proof to the IRS of purchases made on behalf of theirbusiness and for reimbursement purposes as described above. Individualsrequire receipts as proof of purchase in case they want to return itemsthey purchased to a vendor in exchange for other monies or goods, or topartake in rebates or warranties. Individuals also desire receipts forbudgetary reasons in order to track cash and credit expenditures.

In almost all organizations, the reimbursement process can be quitelaborious and time consuming. Original receipts need to be photocopiedseveral times in case the originals are lost. Copies are sent to variouscontrollers and in some cases organization(s) that are sponsoring theservices and expenses. Because receipts come in various sizes,photocopying receipts can be cumbersome and difficult. After thereceipts are photocopied, individuals often need to fill out detailedexpense reports matching each receipt to a specific expense line item.In a number of instances, receipts must be physically attached (taped orstapled) to a blank sheet of paper before the original receipts andexpense reports are sent to the appropriate parties involved. Businessprofessionals must also deal with digital receipts from airlines and insome cases hotels. This often requires opening an email, printing thereceipts, and then attaching the receipt to a blank piece of paper.Controllers who review the expense report spend significant timeensuring that expense items claimed on the expense report can beverified by the actual receipt.

Small business owners require receipts as proof to the IRS of purchasesmade on behalf of their business and for reimbursement purposes. Mostsmall business owners spend significant amount of time organizing andpreparing business expenses for tax purposes. Time constraints and lackof organization make it difficult to easily prepare businessexpenditures for tax purposes. Numerous small business owners “waituntil the last minute” to organize and submit taxes. Small businessowners must also create detailed expense reports as described above, andattach their receipts according to their clients' procedures.

Individuals desire to keep their receipts in case they want to return orexchange an item they purchased from a vendor. Often, the receipts aremisplaced, lost or damaged, thereby making it difficult to return theitem. Individuals also desire to keep their receipts in order to claimspecial rebates or warranties. Individuals are usually required to sendoriginal receipts as proof of purchase to the manufacturer or sponsor ofa promotion. Individuals also like to collect receipts in order to keeptrack of cash and credit expenditures for budgetary purposes.

In addition to storage of receipts, one of the most onerous tasks facedby business people is the generation and reconciliation of expensereports. An expense report is often necessary to receive reimbursementfor travel or other expenses. Expense report is used herein broadly, andmeant to include any type of report or recordkeeping for trackingexpenses, including IRS required recordkeeping. Today, each receipt mustbe manually entered into the expense report, even if the report is doneelectronically on computer. Many receipts require multiple expensereport entries. Expense report is also meant to include a list ofreceipts.

A number of systems exist that allow a user to scan, organize and storeexpense reports in electronic format. Computer systems also exist thatallow users to electronically enter expense reports for reimbursement ortax purposes. However, users of such systems are still required tomanually enter receipt data into their expense reports.

A system therefore is needed that will both scan the expense receiptsand capture the data on the expense receipts and enter that data intothe expense report.

BRIEF SUMMARY OF THE INVENTION

The present invention is a system comprising image capture device, suchas a scanner or digital camera connected to a computer processor (CPU)that is able to capture and store images, and a method of using the samefor storing and processing expense receipts. The computer processoranalyzes the images of the receipts, converts the images to text,analyzes the text, extracts expense data, and puts the data into anexpense report. The end user can review the captured expense data,correct it or add to it. Preferably, the system displays the image ofthe receipt side-by-side with the captured expense data to make reviewand editing easier.

In a preferred embodiment the image capture device is portable, such asa handheld scanner or digital camera, so that a user can scan receiptswhile traveling and discard the receipt.

Also, in a preferred embodiment, the images are encrypted to preventtampering by the user or a third party, and thereby preserve theintegrity of the receipt image.

In one preferred embodiment, receipt images are uploaded via theInternet, an intranet, or other network, to a remote data storagefacility to further protect the images, both from tampering and fromloss.

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING

The foregoing summary, as well as the following detailed description ofpreferred embodiments of the invention, will be better understood whenread in conjunction with the appended drawings. For the purpose ofillustrating the invention, there is shown in the drawing an exemplaryembodiment. It should be understood, however, that the invention is notlimited to the precise arrangements and instrumentalities shown.

In the drawings:

FIG. 1 is a is a functional block diagram illustrating a conceptualoverview of the present invention.

FIG. 2 is a functional block diagram illustrating a preferred flow ofuser operation of the present invention.

FIG. 3 is a detailed example of the typical information found on areceipt, and the present invention's ability to parse and searchinformation stored in the digitized receipt image.

FIG. 4 a screen shot of an embodiment of the invention showing a list ofreceipts and a receipt image side by side.

FIG. 5 is a screen shot of an embodiment of the invention showing a listof receipts, receipt image and an expense report in one screen.

FIG. 6 is a screen shot of an embodiment of the invention showing anexpense report and a receipt image side by side.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a block diagram of the present invention. The process beginswith a paper expense receipt 101. Such expense receipts are typicallyprinted by a cash register or other point of sale device by merchants.Through an input device 102 an image of the receipt is createdelectronically and digitized 103.

Many types of receipt image input devices are possible. In oneembodiment the input device is a flatbed scanner connected to a desktopcomputer. In another embodiment the input device may be a high speedscanner scanning many images for a corporation. In another embodimentthe input device is a facsimile machine. In this embodiment a user canbe provided with a fax number with which to fax his or her receiptswhile he is traveling and the digitized image of the fax can be storedinstead of, or in addition to, printing it to paper. In the preferredembodiment the input device is portable such as a digital camera orportable scanner. Although not a limitation of the invention, theinventors have found that preferably, a digital camera would have aresolution of at least 300 dpi, or approximately 2 megapixels for areceipt of typical size. With image enhancement software lowerresolution may be used as well. Such a digital camera need not be astand alone camera, but will preferably be integrated into anotherdevice the users are likely to carry such as a cell phone, personaldigital assistant (PDA) or communicator (i.e. combination PDA/cellphone).

Where a portable input device is used, the device will preferably have adisplay screen as well, so that the user can review the captured receiptimage to ensure that an adequate image of the receipt has been captured.The input device may also use some form of removable storage such as amemory card or small hard drive. The portable device, in the preferredembodiment will also connect wirelessly through wireless telephone orwireless Internet access to a remote means of storing the image, thusbeing able to off-load the image during travel. In another embodimentthe portable device may connect through standard telephone lines, orinternet access lines, such as those found commonly in hotel rooms, to aremote computer for the offloading of captured receipt images.

While the embodiments discussed above use scanners or digital cameras asan input device, the invention is meant to encompass any method oftaking an image of a paper receipt and turning it into a electronicdigital format, whether now known or hereinafter invented.

In the preferred embodiment the input devices also time stamps the dateand time which the receipt image was captured. This is also of greatassistance in preventing fraud.

The system can handle a plurality of receipts and preferably shouldallow for separate items from a single receipt to be included ondifferent expense reports.

Once the image has been captured it is transferred to a computer forprocessing. The terms computer, CPU and computer processor are meant tobe used broadly as any microprocessor based computing device capable ofprocessing digital information and need not be a separate device fromthe receipt image input device. The computer may be a server a desktopcomputer, a server, a laptop computer, a PDA, a communicator, atelephone, a digital camera or any other computing device now know orhereinafter invented.

The user can save the expense report with the digitized receiptsattached to each line item or save the digitized receipts in a batch orindividually file them to the CPU or Internet host. The expense reportcan be viewed with the digitized receipt next to the appropriate expenseline item. This will speed up the process of verifying that expense lineitem is accurate and correct. The user may also print the receipts 1, 3or 6 per page displaying the descriptive information that the userpreviously attached.

The user may also manually attach descriptive information to the receipteither on a CPU or the Internet, or through the input device (such as aPDA). For example, expense category, amount of expense, date oftransaction, client sponsoring expense, name of vendor, or vendoraddress. The user may also attach personal descriptive text to eachreceipt. Any information attached to the receipt will preferably followthe receipt image in an electronic fashion.

A preferred aspect of this invention includes encryption of the scannedreceipt image 104. Encryption may be performed by either the inputdevice or the computer but it is preferable that it be performed asearly as possible in the process to prevent any tampering with theimage. In one embodiment the software uses a proprietary encryptionmethodology that can only be subsequently viewed by a compatible viewer105. This viewer does not include any editing capabilities, thuspreventing the receipts from being changed. Such a system is preferableto using other standard formats such as tiff, giff or pdf for whichstandard editors commonly exist. Of course, other encryption techniquesusing public or private key techniques, whether now known or hereinafterinvested may be used with the system. The foregoing is not meant topreclude embodiments of the invention which use standard file formatsand do not use encryption. In addition the invention can be practicedwith other authentication schemes, whether now known or later invented,that prevent undetected tampering with the original image.

In addition to encryption to prevent tampering, in a preferredembodiment the images are stored in a compound document making it verydifficult for a would be forger to access the images directly usingthird party software.

After the digital image is received by the computer, software on thecomputer converts the image data into alpha-numeric strings 106.Software routines such as optical recognition (OCR) and image characterrecognition (ICR) for handwriting recognition are well known in theindustry and will not be further described herein. The invention ismeant to incorporate all such methods of converting images toalpha-numeric data whether now known or hereinafter invented and theterms OCR and character recognition as used herein are meant to includeICR and any other such conversion methods.

The process of converting the image into alpha-numeric data may alsoinclude image enhancement techniques. Where the receipt may be blurry orcrumpled or otherwise imperfect, or the resolution of the input deviceis relatively low, such preprocessing of the image may be necessary inorder to successfully convert it to alpha-numeric data. Techniques suchas noise filtering, contrast enhancement, edge filtering, sharpening, aswell as many others are well known within the optical imaging filed ofart and will not be described in detail here. The invention is meant toembody all such types of image filtering and preprocessing whether nowknown or hereinafter invented. The inventors have found thatcommercially available libraries such as Scansoft, Abby Fine Reader andTransym OCR were useful in the process of filtering the images andconverting the image to text. These packages include routines forautocropping, despeckling and deskewing which the inventors found usefulin practicing the invention.

In the preferred embodiment the OCR/ICR process also preserve some ofthe spatial information with respect to where the text is on thereceipt. This may be helpful in the next step of parsing thealpha-numeric text in order to find expense receipt information.

The next step is parsing 107-110, which involves analyzing thealpha-numerical text to find meaningful terms and values. The parsingidentifies certain text as the date and amount of the receipt, it willalso look for the vendor name. If the receipt has multiple charges onit, in the preferred embodiment, the parsing software will recognize thevarious amounts on the receipt and identify the charges associated withthose amounts. Thus, for example, on a hotel bill, the parsing softwaremay be able to identify separately the charges for room, charges formeals, telephone calls and movies. While not a required part ofinvention, this separating of receipts is beneficial in that manyreceipts carry charges that must be sub-categorized. For example, moviecharges may not be reimbursable or, on a restaurant bill, alcoholcharges may not be tax deductible.

Because most receipts possess similar information, the software utilizesa list of common terms to search for within the receipt text 110. Forexample, the software performs a search within the receipt text forterms such as “amount”, “total amount” and/or “amount due.” It alsosearches for known date formats. The software also utilizes a static andnon-static database of popular vendors to facilitate the filing of theexpense description category in the expense report 109. For example, ifthe receipt reads McDonalds, the software recognizes that McDonalds is arestaurant and automatically selects meals from the expense descriptioncategory in the expense report. The database may be updated by thesystem provider or corporate sponsor via an convenient update mediumsuch as a CD, ftp download or via the Internet. The static andnon-static databases may be a single database.

FIG. 3 shows a typical receipt and the type of expense data that may beextracted from it to form an expense line item.

Once the software locates the terms within the receipt text, thecorresponding dollar amount or other relevant data (date, location, etc)is extracted it is placed into the appropriate expense report line itemcategory 111. The receipt information extracted from the image isreferred to herein as “expense data”. After the receipt is correlated toan expense line item in the expense report, the software may learn thereceipt structure so the next time a receipt from the same vendor isscanned into the system, the software recognizes the data structure andallocates the information appropriately to the expense report.

In one preferred embodiment, the software can learn the receiptstructure for particular vendors, either by use of commerciallyavailable forms software or by remembering the structure of the dataonce it is parsed and/or corrected by the user.

An expense report is created from the extracted expense date bycorrelating each expense line item with an appropriate expense report tobuild the expense report 112. To facilitate this process, the softwareutilizes a number of different rules to sort and organize the expensereport. For example, because the structure of a business trip is routineand consistent, the software will sort expense line items according totheir placement in a business trip. A meal eaten in the user's home citywill either come at the very beginning or the very end of a trip, asopposed to a meal eaten in a different city which would tend to occur inthe middle of a trip. The user may edit, store and manage the expensereport either from a CPU, PDA or the Internet. The information can alsobe imported into other popular expense software such as Quicken and MSMoney 113 or other financial package, and can be customized to interactwith specific corporate systems 117. The user can also insert expensesthat have do not have a receipt associated with them.

FIG. 2 is a similar flow chart to FIG. 1 except from the perspective ofthe user. The flow chart is self explanatory in light of the descriptionabove of FIG. 1 and will not be further described herein.

Expense data can be presented in a number of ways. In one embodiment allreceipts scanned in are listed and can be sorted by various fields.Preferably the list of receipts can by subcategorized by folders. Asshown in FIG. 4, a list of receipts 12 is shown on the right of thescreen. The user can scroll through the list 12, and for the highlighteditem 14, the image of the corresponding receipt image 10 is shown on theleft half of the screen. If a new receipt is scanned in, its image isshown on the left panel 10, and a new line item, with the correspondingexpense data is filled in on the right panel 12. The user can theneasily correct data or enter missing data for each receipt.

FIG. 5 shows another view presented in the software embodying theinvention. In this preferred embodiment, the list of receipts is shownin the top right panel 12, and a particular expense report is shown inthe bottom right panel 16. A user can simply pick receipts from the list12 and drag and drop them (or cut and paste, or check, or any othermeans of designation) using a mouse to the expense report 16. Additionalitems for which there are no receipts can also be entered into theexpense report. When that expense report 16 is complete, it can be savedand a new expense report opened. Again as line items in the list ofreceipts 12 or in the expense report 16 are highlighted, thecorresponding receipt image 10 is shown in the top left panel.

FIG. 6 shows another way to operate the system. In this view, the usersees the expense report 16 on the right panel. Now as items are scannedin they are immediately associated with the open expense report, thereceipt image 10 is shown on the left and the expense data associatedwith that image shows up as a new line item 14 directly in the expensereport 16.

The software and views described in the previous three paragraphs areshown merely as an exemplary embodiment and are not meant to in any waylimit the scope of the invention.

Receipts can be correlated with particular expense reports eithermanually or the software can correlate the receipts to expense reportsautomatically. For instance, the software may assume that all theexpense receipts for contiguous period of days for a single user will beon the same expense report. The user can then call up receipts from anexpense report and see the users receipts associated with those expensereports. As discussed above, in the preferred embodiment of the expensereport and the receipts are placed side by side on the user's displayterminal, thus making it easier for the user to check the expensereport. The user can then correct and edit the expense report and/orcorrelate a receipt with a different expense report. If the parsingroutine has been unable to resolve certain information it maybehighlighted in the expense report or simply not appear there.Potentially the parsing software may have made mistakes, such as puttinga charge to the wrong type of expense. The user can edit the expensereport where this information is stored. In the preferred embodiment ofthe viewing software the user can click on an expense and automaticallybe taken in to an image of the associated expense receipt.

In one embodiment of the invention the software is capable of correctlyorientating the image of the receipt so that it is displayed correctly(that is, not upside down or sideways) regardless of how the receipt isscanned in. In one simple algorithm, the software simply orients thereceipt so that the longest side is top to bottom. This can beimplemented by rotating the image 90 degrees in the width of the imageas scanned is longer than its height. A more complex algorithm, yet moreaccurate, can use the OCR data to figure out which way the receipt iscorrectly oriented.

Additional information may also be added to the expense report throughelectronic means for instance credit card transactions maybe downloadedinto the expense report, and users may not be required to keep physicalpaper receipts for such transactions or the credit card transactions canbe reconciled on the expense report against the expenses found on thereceipts. Other types of electronic payments such as debit cards can behandled in a similar fashion. In addition, users may add additionalexpenses for which they have no receipts, such as car mileage and tips.

Given sufficient computational power and a screen the process of theuser reconciling the expense report can be done in transit. Most readilythis is done today using a laptop computer connected to the inputdevice. The software for parsing the images and sorting the expensereports can be loaded on the laptop and the user can reconcile theexpense reports while on an airplane or in his or her hotel room. Ashand held devices become more capable both in terms of computationalpower and screen resolution this process could all be handled by asingle hand-held device with the images and the reconciled expensereport being uploaded from the hand-held device (either wirelessly orthrough a wired connection) after the expense report reconciliation hasbeen completed by the user.

Alternatively, in a web based system the user can upload the scannedimages to an internet website and access the images and expense reportsoftware via a browser or proprietary software application. This wouldreduce the amount of storage and computational power required by theuser's local computer, as well as reduce opportunities for tampering.

In another preferred aspect of the invention the system also checks forduplicate receipts entered either by mistake or for purposes of fraud.This can be done with relatively simple algorithms such as searching foridentical amounts from the same vendor on the same day. More complexalgorithms can actually compare images although this is difficultbecause the same receipt can be scanned with different orientationsresulting in different images. However, within the art of imagerecognition there are known techniques for comparing images forsimilarity and the invention is meant to incorporate such techniques andothers hereinafter invented.

The invention may also include an expense rule checking module whichapplies rules to expenses. For instance, if travel is only reimbursed upto a certain amount per day, the software can check that the submittedreceipts don't exceed that amount.

Returning to the task of parsing the text data, the software searchesfor key words and/or structures in the alpha numeric text dataabstracted from the digitized receipt image. For example, most receiptsshare similar date structure that allows the software to recognize aspecific sequence of numbers as the date. These key words are also knownas tokens.

Once recognized, the software pulls the information from the digitizedreceipt and allocates it to the appropriate expense line item category.

In a preferred embodiment, the software learns to recognize a receiptsstructure after an initial scan into the system. The software learns theparticular structure of a receipt after its been scanned into the systemand information has been correlated to the receipt via an expense lineitem.

Preferably, the database of key terms/tokens can be updated (i.e. anon-static database) by the vendor, user or the software. If the parsingsoftware cannot find a vendor on a receipt, but the user enters thevendor name, such as “Acme Co.”, then “Acme Co.” can be added to thedatabase. Assuming the user also fills in an expense category for thereceipt, such as “Road Runner Extermination”, then the database can alsoassociate that vendor name with that expense category. In this way, thenext time an expense receipt is scanned form “Acme Co.” the softwarewill recognize the name in the receipt as a vendor name, extract it andfill in the expense data with “Vendor: Acme Co., Category: Road RunnerExtermination.”

The software may also use specific sets of rules to prompt the user foradditional information. The software recognizes a particular expense asrequiring additional information to be entered into the appropriateexpense line item in the expense report.

In one embodiment, the user can manually write a number or text in aparticular region of the paper receipt that signals the software whenthe receipt is scanned, to automatically fill out particular expenseline item categories in the expense report. Likewise, the user maymanually circle discreet components on the physical receipt, such asdate, amount, location, etc, which signals the software to payparticular attention to that area. This will enable the software to weedout irrelevant terms that may otherwise confuse the parsing andsearching functionality.

An exemplary set of parsing rules is set forth below in Table 1. Thisset of parsing rules is in no way meant to limit the scope of theinvention, but is meant to demonstrate one embodiment which theinventors have found to be of use in practicing that inventing the useof color is these rules is not meant to require color scanning, and theinvention may be practiced using gray scale or black and white imaging.

TABLE A Exemplary Parsing Rules Date 1. If a receipt is yellow, look fora date identifier string in the upper third of the document. Theinformation that immediately follows this string should be the receiptdate. So far, the only date identifier string observed for yellowreceipts is ‘Date’ 2. If a receipt is yellow and a date identifiercannot be found, search the upper half of the receipt for stringsmatching the date formats in this order: MM/DD/YY (Look for thetwo/characters) MMM DD, YY (Look for the abbreviated months) MMMDD’YYMMM DD, YYYY Month DD, YYYY (Look for the full length month) 3. If areceipt is yellow and the date cannot be identified by format, it may befound by working backwards from the time, which often follows date. Wecan identifytime by searching for the formats listed below and movingbackward. We may encounter a time identifier string, or we may encounterthe date. If we see the identifier string, continue moving backwards andthe next text item may be the date. Time Formats, in order of frequency:HH:MMPM, HH:MM PM, HH:MM:SS, HH:MM:SS PM, HH:MM Time Identifier String(only one observed): Time 4. If a receipt is white, search the topquarter of the receipt for a date identifier string. If it is found, thetext immediately following should be reported as the date. However, wewill expect this to fail more often than not. The most common dateidentifier string for white receipts was ‘Date’ 5. If a date identifierstring cannont be found, look for the DD/MM/YY date construction in theentire receipt. This was the single most common date format for whitereceipts. We should rely primarily on the two/characters foridentification; some receipts drop the leading 0. 6. Time informationvery frequently follows immediately after date information on whitereceipts. Our second method of date location should be working backwardsfrom the timestamp. In many cases, the information immediately precedingthe timestamp can be reported as date. Time formats, in order offrequency: HH:MM PM, HH:MM, HH:MMPM, HH:MM:SS, HH:MMP 7. If we cannotfind a date using the DD/MM/YY format or via time, we should look forthat information matching the following forms: MMMDD’YY, MM-DD-YY, MMMDD, YY and MMM DD, YYYY Vendor No broadly reliable method exists foridentifying vendor information on the receipt. The following two rulesmay fail frequently, but may also provide useful information. 1. Thevendor name may be reported as the first string of letters on thereceipt. This is far from reliable, though. 2. Since the vendorinformation often includes address, we can look for a state abbreviationfollowed by a 5 digit number (ZIP code) and report the vendorinformation as the text that precedes those. We'd have to account forcity, street address, and vendor name, so including at least theprevious 6 discrete strings would seem prudent. Total Tip or Non-TipStructure 1. We will first attempt to classify receipts as having a tipstructure or non-tip structure by searching for positive evidence of atip identifier. This would be the presence of any one of the followingstrings: Tip, Tip Amount, Gratuity, Gratuity Amount If one of thesestrings is found, we will assume the receipt is a tip struc- turereceipt. 2. If the first classification rule fails, we will attempt tofind evidence that the receipt is a standard, non-tip structure. Thiscan be established by the presence of a tax line on the receipt. Taxlines will include strings as follows: Tax, Sales Tax, (StateAbbreviation, i.e. PA) Tax, (State Abbreviation) Sales Tax If one ofthese strings can be found, then we can assume that the receipt is anon-tip structure. 3. If neither of these rules can be successfullyapplied, the receipt should be treated as a non-tip structure. PaymentMethod 1. We can determine payment method positively by searching forcertain strings in the receipt. 2. A receipt will be treated as a creditcard receipt if we can identify one of the following strings:MASTERCARD, MC, VISA, AMEX, CREDIT 3. A receipt will be treated as acredit card receipt if we can find evidence for an expiration date fieldby identifying one of the following strings: EXP, EXP DATE 4. A receiptwill be treated as a credit card receipt if we can find evidence of acredit card account numver in one of the following formats:XXXXXXXXXXXX1234, 1234 1234 1234 1234, XXXX XXXX XXXX 1234 5. A receiptwill be treated as a cash receipt if we can find the string ‘CASH’ inthe lower third of the receipt. 6. If none of the above rules can besuccessfully applied and the receipt is yellow, we will treat it as acredit card receipt. 7. If none of the above rules can be successfullyapplied and the receipt is white, we will treat the receipt as a cashreceipt. Total Amount (Tip Receipts) 1. We will first attempt to find atotal amount by searching for tip receipt total identifier strings inthe lower half of the receipt. The dollar amount immediately followingthese strings will be treated as the subtotal, and either a flat 15%rate or a configurable tip function will be applied to it The followingstrings are valid total identifiers: Subtotal, Base, Amount, Pre-TipAmount 2. If we are unable to find a total amount identifier, we canassume that in a tip structure receipt, the subtotal amount number willbe the highest readable dollar amount on the receipt. Total amount(Non-Tip Receipts) 1. We will first look for the total on a non-tipreceipt by looking for a total identifier string and assuming that thenumber that immediately follows such a string is the appropriate totalamount. Valid total identifier strings are: Total, Sale Total, Sale 2.If a valid total identifier string cannot be found and the paymentmethod rules above show that the receipt is a credit card sale, thetotal amount will be the highest number on the receipt. 3. If a validtotal identifier cannot be found and the receipt is a cash receipt, thenit is necessary to look for a change identifier and change amount. Achange amount immediately follows a change identifier. Valid changeidentifiers are: Change, Change Due 4. If the change amount is non-zero,then we will take the second highest dollar amount on the lower half ofthe receipt as the total. 5. If the change amount is zero, then we willtake the highest dollar amount on the lower half of the receipt as thetotal. 6. If the change amount cannot be identified, we will look for arepeating amount. This we can assume is total and tender in an exactchange situation, and should also be the last two dollar amounts on thereceipt. 7. If neither a change amount nor a repeating amount can beidentified, we can assume that we have an inexact change receipt. Weshould then report the second highest identifiable dollar amount as thetotal. End of TABLE 1

As previously mentioned, in one preferred embodiment receipts are storedand processed remotely via the Internet, an intranet, or other network.Such a network serves several main purposes: 1) ensures that thereceipts have not been manipulated or altered, thereby ensuring theirlegitimacy; 2) stores and organizes the receipts by individual userand/or an organization; 3) mirrors functionality that a local clientprovides the user on the network; and 4) allows expense reports andimages to be electronically and easily routed to multiple individuals.The receipt account on the Internet (ASP) provides the individual userwith a number of benefits. It serves as a verification source that thereceipt has not been manipulated or altered in any way. This isimportant to the IRS and Employers. Users may access their accountthrough the Internet and view and create receipt expense reports, asopposed to just being able to view or create receipt expense reportswith their software enabled computer processor.

Organizations also benefit from the system. If an entire organizationuses the receipt system, then the organization can integrate theirexpense reports into the accounts payable program of an accountingsystem. Approvals can be granted, checks cut and mailed, andnotifications provided to the expense submitter.

It is understood that the invention is not limited to the disclosedembodiments, but on the contrary, is intended to cover variousmodifications and equivalent arrangements included within the spirit andscope of the appended claims. Without further elaboration, the foregoingwill so fully illustrate the invention, that others may by current orfuture knowledge, readily adapt the same for use under the variousconditions of service.

What is claimed:
 1. A method for processing a paper expense receiptusing a computer system comprising the steps of: receiving at a computerinput device the paper expense receipt from an individual incurring anexpense; receiving on a computer processor an electronic image of theexpense receipt from the computer input device; processing theelectronic image to automatically obtain expense data by: usingcharacter recognition software to obtain text data from the electronicimage; and parsing the text data to determine the expense data positionwithin the text data; and populating an electronic expense report withthe expense data; and displaying the electronic expense report to theindividual; wherein the position of the expense data on the expensereceipt is not predefined for the computer system.
 2. The method ofclaim 1 wherein the computer input device is a portable scanner, digitalcamera, facsimile machine, personal digital assistant camera, telephonecamera or communicator camera.
 3. The method of claim 1 wherein the stepof processing the electronic image is further comprised of the steps of:using character recognition software to obtain text data from theelectronic image; parsing the text data to search for expense data. 4.The method of claim 1 wherein the expense data is date of expense,expense amount, vendor name, payment method or vendor address.
 5. Themethod of claim 1 further comprising the steps of: receiving additionaldata; modifying the electronic expense report with the additional data;displaying the modified electronic expense report to the individual; andstoring the modified expense report in non-volatile memory.
 6. Themethod of claim 1 further comprising the step of encrypting theelectronic image.
 7. The method of claim 1 further comprising the stepof encrypting the expense report.
 8. The method of claim 1 wherein thecomputer applies a set of expense rules to the expense data.
 9. Themethod of claim 1 wherein the expense report and receipt image aredisplayed simultaneously.
 10. The method of claim 1 wherein the expensereport, a list of scanned receipts, and receipt image are displayedsimultaneously.
 11. The method of claim 1 further comprising the step ofchecking for duplicate receipts.
 12. A computer readable mediumcontaining instructions for controlling a computer system to perform amethod for storing a paper expense receipt comprising the steps of:receiving at a computer input device the paper expense receipt from anindividual incurring an expense; receiving on a computer processor anelectronic image of the expense receipt; processing the electronic imageto automatically obtain expense data by: using character recognitionsoftware to obtain text data from the electronic image; and parsing thetext data to determine the expense data position within the text data;and populating an electronic expense report with the expense data; anddisplaying the electronic expense report to the individual; wherein theposition of the expense data on the expense receipt is not predefinedfor the computer system.
 13. The computer readable medium of claim 12wherein the computer input device is a portable scanner, digital camera,facsimile machine, personal digital assistant camera, telephone cameraor communicator camera.
 14. The computer readable medium of claim 12wherein the step of processing the electronic image is further comprisedof the steps of: using character recognition software to obtain textdata from the electronic image; parsing the text data to search forexpense data.
 15. The computer readable medium of claim 12 wherein theexpense data is comprised of date of expense, expense amount, vendorname, payment method or vendor address.
 16. The computer readable mediumof claim 12 wherein the method further comprises the steps of: receivingadditional data; modifying the electronic expense report with theadditional data; displaying the modified electronic expense report tothe individual; and storing the modified expense report in non-volatilememory.
 17. The computer readable medium of claim 12 further comprisingthe step of encrypting the electronic image.
 18. The computer readablemedium of claim 12 further comprising the step of encrypting the expensereport.
 19. The computer readable medium of claim 12 wherein thecomputer applies a set of expense rules to the expense data.
 20. Thecomputer readable medium of claim 12 wherein the expense report andreceipt image are displayed simultaneously.
 21. The computer readablemedium of claim 12 wherein the expense report, a list of scannedreceipts, and receipt image are displayed simultaneously.
 22. Thecomputer readable medium of claim 12 wherein the method is furthercomprised of the step of checking for duplicate receipts.
 23. A computersystem for processing a paper expense receipt comprised of: a computerinput device for receiving the paper expense receipt from an individualincurring an expense, and creating an electronic image of the receipt; acomputer processor in communication with the computer input device; asoftware module operating on the computer processor processing theelectronic image to obtain expense data by; applying characterrecognition techniques to obtain text data from the electronic image;and parsing the text data to determine the expense data position withinthe text data; and a display in communication with the computer on whichthe expense receipt is displayed to the individual; wherein the positionof the expense data on the expense receipt is not predefined for thecomputer system.
 24. The system of claim 23 wherein the computer inputdevice is a scanner, digital camera, facsimile machine, personal digitalassistant camera, telephone camera or communicator camera.
 25. Thesystem of claim 23 wherein the software module for processing theelectronic image is further comprised of: a character recognitionsoftware module to obtain text data from the electronic image; a parsingsoftware module for parsing the text data to search for expense data.26. The system of claim 23 wherein the expense data is comprised of dateof expense, expense amount, vendor name, payment method or vendoraddress.
 27. The system of claim 23 further comprising a second inputdevice for receiving additional data to modify the expense report. 28.The system of claim 23 further comprising a software module operating onthe computer processor for encrypting the electronic image.
 29. Thesystem of claim 23 further comprising a software module for applying aset of expense rules to the expense data and expense report.
 30. Thesystem of claim 23 wherein the expense report and receipt image aredisplayed simultaneously.
 31. The system of claim 23 wherein the expensereport, a list of scanned receipts, and receipt image are displayedsimultaneously.
 32. The system of claim 23 further comprising softwaremodule to check for duplicate receipts.
 33. A computer system forprocessing a paper expense receipt comprised of: a computer input devicefor receiving the paper expense receipt from an individual incurring anexpense, and creating an electronic image of the receipt; a computerprocessor in communication with the computer input device; a softwaremodule operating on the computer processor processing the electronicimage to automatically obtain expense data by: applying characterrecognition techniques to obtain text data from the electronic image;and parsing the text data to determine the expense data position withinthe text data; and a software module operating on the computer processorfilling in an expense report with the expense data; and a display incommunication with the computer on which the expense report is displayedto the individual; wherein the position of the expense data on theexpense receipt is not predefined for the computer system.
 34. Thesystem of claim 33 wherein the computer input device is a scanner,digital camera, facsimile machine, personal digital assistant camera,telephone camera or communicator camera.
 35. The system of claim 33wherein the software module for processing the electronic image isfurther comprised of: a character recognition software module to obtaintext data from the electronic image; a parsing software module forparsing the text data to search for expense data.
 36. The system ofclaim 33 wherein the expense data is comprised of date of expense,expense amount, vendor name, payment method or vendor address.
 37. Thesystem of claim 33 further comprising a second input device forreceiving additional data to modify the expense report.
 38. The systemof claim 33 further comprising a software module operating on thecomputer processor for encrypting the electronic image.
 39. The systemof claim 33 further comprising a software module for applying a set ofexpense rules to the expense data and expense report.
 40. The system ofclaim 33 wherein the expense report and receipt image are displayedsimultaneously.
 41. The system of claim 33 wherein the expense report, alist of scanned receipts, and receipt image are displayedsimultaneously.
 42. The system of claim 33 further comprising softwaremodule to check for duplicate receipts.